THE VIEW FROM: PUTNAM

THE VIEW FROM: PUTNAM; BAGELS GIVE TOWN AN ECONOMIC BOOST

By ROBERT A. HAMILTON

Published: September 27, 1987

IT took a bagel baker to make people in the small town of Putnam realize they have finally joined the economic boom that has been benefiting so many Connecticut communities.

There has been other development, including the announcement by an office-equipment distributing company that it would build a warehouse here to employ about 150 people. But when Lender's, the New Haven-based bagel maker, announced it would purchase a site in the Putnam Industrial Park for its newest plant, people realized the town was on the move.

''This area has been discovered,'' said the former Putnam mayor and a former State Department of Economic Development official, Leo C. Tetreault, who helped Lender's find a site in the town.

''Our biggest problem now is going to be controlling the growth, making sure the town grows the way we want it to,'' Mr. Tetreault said.

''Now that we've got some new buildings going up,'' Mayor Roberts said, ''I'd like to start concentrating on some of the older mill buildings that are vacant.'' He said he especially was concerned about a three-story stone building off Kennedy Drive, which, if renovated, would improve the looks of the central business district.

''Putnam's image is changing,'' said the town's economic development director, Michael J. Kopeski Sr. ''We're in discussions with several industrial prospects.''

Now that a couple of large companies have chosen sites in Putnam, a town of about 9,000 residents, officials are looking for a ''snowball effect,'' said the director of municipal development for the Economic Development Department, Kenneth L. Roberts.

''Attracting a large company to a town, particularly a company with the prestige of Lender's,'' Mr. Roberts said, ''adds a lot of credibility to the town and its industrial park.''

Another incentive is that those opposed to development are few and unfocused, said Mayor Roberts.

''Oh, there's some people who don't want another home, who don't want another building,'' Mayor Roberts said. ''But there's always going to be someone who, when you bring a white horse in, will say they wanted a black one.''

''For the most part,'' the Mayor continued, ''people in town want the jobs and the taxes any new businesses will bring in.''

Putnam was particularly hard hit by the floods of 1955, which destroyed several of the textile operations and other businesses in town. When the waters receded, a flood of cheap, foreign textiles killed the industry in this country, idling many of its remaining mills.

Unemployment was as high as 14 percent until a few years ago, and now it is almost 8 percent, more than twice the state average.

An industrial park off Park Road was opened the year after the flood, but it took years to attract the six tenants who now fill it; these include two plastics companies, a winch manufacturer, a paper firm, an electrical- parts operation and an automotive- parts assembly plant.

The sixth tenant moved in a decade ago, and little demand for industrial land in Putnam has occurred since.

Two years ago, however, Governor O'Neill announced his program for the Comprehensive Reorganization of the Northeast Economic Region, a $2.2 million development plan for Windham County and particularly the poorer areas of high unemployment, such as Putnam.

Since then, the Connecticut Department of Economic Development has been steering prospective industries to the northeast corner of the state, and Putnam last year finished road, sewer and sidewalk construction on a 135-acre addition to its industrial park.An office-supply chain, Staples, has bought about 19 acres and is constructing a warehouse and assembly plant to serve its stores throughout the northeast.

But the biggest boost to Putnam's economy came when Lender's announced it had signed a letter to acquire 52 acres in the park.

Lender's will pay $20,000 an acre for the land it will develop, and $5,000 an acre for land to be left as open space. The state will provide $600,000 to Putnam to help prepare the Lender's site.

Lender's was founded in 1927 in New Haven, and was purchased by Kraft, a Chicago-based food conglomerate, in 1984. It has experienced rapid growth during the last decade, said company officials.

''Americans have discovered the bagel,'' said a company spokesman, Carol A. Wallace, who said about six million bagels a day are eaten in the United States. She estimated that the figure will increase as fast-food restaurants like Burger King introduce bagel breakfasts. Lender's sells most of its bagels in grocery stores, frozen in packages.

''This is not just a fad food that's going to be forgotten in a few months,'' Ms. Wallace said. ''Bagels are here to stay.''

Lender's has three plants in West Haven, a plant in New Haven, and one each in Buffalo, N.Y., and Mattoon, Ill.

Lender's expects to eventually hire about 300 people at its Putnam plant, she said, making it one of the town's largest employers. Engineering studies are still being conducted to determine the size of the plant, Ms. Wallace said. The Mattoon operation, which employs 150 people, is 160,000 square feet, she said.

Town officials point out that Putnam recently has had quite a bit of development. The Planning and Zoning Commission recently approved 500 condominium units in two projects on Grove and Sabin Streets. The Massachusetts developer, James O. McFarland, last week opened the renovated, 14,000-square-foot Ward Building, a landmark in the central business district, which now has seven retail shops and five office units. Putnam's Small Cities program has invested millions in commercial and residential rehabilitation, as well as improvements to streets, sidewalks and other public amenities.

''We were moving in a very positive direction even before the Lender's announcement,'' said Mr. Kopeski, Putnam's economic development director. ''We're very optimistic.''

Mr. Tetreault, the former mayor who was involved in Lender's move, said it was only a matter of time before developers realize Putnam is an attractive location.

The town has access to major highways heading north, south, east and west, he said. Putnam is only a 50- minute drive from Boston, or a 20- minute drive to Worcestor, Mass., key distribution points for any company, he added.

Putnam's high unemployment rate indicates the availability of a large labor pool, he said, adding that many town residents commute from Putnam to New London, Hartford, Boston or Providence, R.I., and would rather work in Putnam if the employment opportunities were there.

The quality of life in Putnam is better than in most areas, he said. Employees can live in an attractive rural setting, and be less than an hour away from urban amenities. And housing is relatively inexpensive, he said, with building lots available for as little as $25,000, and houses in the $100,000 range.

''It's impossible to stymie growth,'' said Mr. Tetreault. ''but you can control, make sure your people have work and you can make sure it's done in good taste. That's the job we have before us now in Putnam.''

Photo of workmen in Putnam Industrial Park breaking ground for building; Photo of a store owner raising the American flag before opening; Photo of Main Street, Putnam (NYT/Steve Zavatski)